Global lignin market is expected to reach USD 6.19 billion by 2022. Growing awareness regarding harmful effect of pollution on human health is expected drive lignin market growth in dust control applications over the next few years. High market potential for lignin as a key intermediate to manufacturing carbon fibers, phenol, BTX and vanillin is anticipated to provide tremendous growth opportunities over the forecast period.

Low-purity grade lignin dominated the global market in 2014 accounting for over 85% of global demand volume and the trend is anticipated to continue over the forecast period owing to its extensive use as a bio-refinery catalyst. In addition, low product cost is likely to play an important role in market growth. Kraft lignin is expected to be the fastest growing segment of the market owing to its extensive application scope in manufacturing aromatic and macromolecules.

Further key findings from the study suggest:

Production of lignin exceeded 1.1 million tons in 2013 and is expected to rise owing to technological advancement aimed at increasing yield and specificity of the product

Europe and North America dominated the global lignin market in 2014 each accounting for over 35% of global demand volume and are expected to dominate the market over the forecast period. Increasing R&D for development of lignin use in untapped applications is anticipated to provide new opportunities for market growth over the forecast period.

Prices of lignin are as high as USD 6,500 per ton depending on the purity of the product. Low yield and specificity coupled with complex manufacturing processes result in high cost of the final product.

Lignin has significant growth potential as a feedstock substitute to crude-oil. For instance, lignin is increasingly substituting crude-oil in the manufacturing of synthetic vanillin.

Macromolecules were the largest application segment of lignin accounting for over 65% of market volume share in 2014. Growing demand for binders & adhesives is expected to propel market growth over the next six years.